ICT Forex - What New Traders Should Focus On

Introduction and Overview

The speaker introduces the new tutorial series, aiming for user-friendly and concise content focused on what new traders should study and practice in trading.

What New Traders Should Study

• Concepts covered include liquidity raids, stop runs, liquidity pools, ICT order block, entry points, scaling profits, and managing losses.

• Emphasizes understanding price action as a crucial aspect for new traders entering the Forex market due to its dynamic nature.

• Reflects on personal experiences of making mistakes despite prior trading experience in other asset classes before engaging in Forex trading.

• Encourages a shift in mindset from traditional retail trading teachings to focusing on essential elements like open-high-low-close prices rather than complex patterns.

• Stresses the importance of comprehending what drives market movements to enhance success probabilities in demo trading before transitioning to live accounts.

Practical Application and Demo Trading

• Advocates for practicing all concepts in a demo account first to develop good habits and increase chances of success when transitioning to live trading.

• Suggests studying price action by identifying where others' trade ideas fail, emphasizing recognizing equal highs and lows as significant price points.

Understanding Price Action in Trading

In this section, the speaker discusses how institutional traders approach price action differently from retail traders and emphasizes the importance of understanding where orders are located in the market.

Institutional Mindset vs. Retail Traders

• Institutional traders focus on finding counterparties and order flow rather than relying on indicators for buy/sell signals.

Identifying Patterns for Analysis

• Teaching a simple method involving marking double bottoms or double tops with lines and notations to understand price movements.

Study and Observation

• Encouraging traders to study price action patterns for a month without trading to grasp the frequency of occurrences.

Analyzing Market Movements

This segment delves into the speaker's personal trading experiences with specific currency pairs, highlighting strategic decisions based on market analysis.

Trading Strategy Insights

• Discussing trading actions taken on Dollar CAD and Euro Dollar pairs due to anticipated market movements.

Anticipating Price Behavior

• Explaining the rationale behind expecting a decline in Euro Dollar based on Dollar CAD movement and sell stop targets.

Utilizing Technical Analysis for Trade Setups

The speaker demonstrates applying technical analysis concepts to identify potential trade setups using historical price levels.

Price Projection Techniques

• Emphasizing targeting areas beyond double bottoms/tops by projecting 10 to 20 pips lower/higher for effective trade planning.

Contrarian Perspective

• Advising against following retail trader sentiment by viewing rallies as selling opportunities instead of buying signals.

Understanding Market Dynamics

In this section, the speaker discusses how the market collects sell stops and explores optimal trade entries.

Market Response to Sell Stops

• The market gathers all sell stops before moving higher in price.

Optimal Trade Entry Strategies

• Missing the ideal entry point can lead to uncertainty in trading decisions.

• Emphasizes that entering a trade at a different level does not necessarily mean chasing prices.

Analyzing Price Action for Trading Decisions

This part focuses on analyzing price action and utilizing order blocks for trading decisions.

Identifying Order Blocks

• Differentiates between regular candles and bearish ICT order blocks based on context.

Utilizing Bearish Order Blocks for Entries

• Explains how to use bearish order blocks as low-risk entry points.

Determining Profitable Trading Levels

Discusses specific price levels and ranges for profitable trading opportunities.

Specific Price Levels for Trading

• Emphasizes the importance of precise price levels over ambiguous zones for trading decisions.

Calculating Profitable Ranges

• Demonstrates how to calculate potential profit ranges based on anticipated entry and stop levels.

Trading Strategy Execution

In this section, the speaker discusses their trading strategy execution in detail, focusing on shorting at a specific price level and setting stop-loss orders effectively.

Candle Set-Up and Short Trade Initiation

• The trader sets the trade at 118.91 and plans to go short as soon as the market hits that price. -

• Stop-loss is placed above the up-close candle to manage risk effectively. -

Bearish Order Block and Stop Placement

• Due to spread constraints in the demo account, the stop is set at 1.19154 for a bearish order block trade. -

• The trader focuses on equal lows for stop placement and potential sell-off targeting. -

Trade Management and Targeting

This part delves into trade management strategies, including setting targets, placing limit orders, and monitoring price movements for optimal outcomes.

Target Setting and Limit Orders

• The trader aims for a 20-pip run with three Lots short while strategically placing limit orders for potential accelerated price movements. -

• Emphasis on watching price behavior below short-term lows for range expansion signals. -

Risk Management and Position Adjustment

Here, risk management practices are highlighted alongside position adjustments based on market conditions to optimize profitability.

Collapsing Positions and Stop-Loss Adjustments

• The trader collapses two out of three standard Lots upon reaching certain profit levels while adjusting stop-loss accordingly. -